Charles Koch to Friedrich Hayek: Use Social Security!

There’s right-wing hypocrisy, and then there’s this: Charles Koch, billionaire patron of free-market libertarianism, privately championed the benefits of Social Security to Friedrich Hayek, the leading laissez-faire economist of the twentieth century. Koch even sent Hayek a government pamphlet to help him take advantage of America’s federal retirement insurance and healthcare programs.

This extraordinary correspondence regarding Social Security began in early June 1973, weeks after Koch was appointed president of the Institute for Humane Studies. Along with his brothers, Koch inherited his father’s privately held oil company in 1967, becoming one of the richest men in America. He used this fortune to help turn the IHS, then based in Menlo Park, California, into one of the world’s foremost libertarian think tanks. Soon after taking over as president, Koch invited Hayek to serve as the institute’s “distinguished senior scholar” in preparation for its first conference on Austrian economics, to be held in June 1974.

Hayek initially declined Koch’s offer. In a letter to IHS secretary Kenneth Templeton Jr., dated June 16, 1973, Hayek explains that he underwent gall bladder surgery in Austria earlier that year, which only heightened his fear of “the problems (and costs) of falling ill away from home.” (Thanks to waves of progressive reforms, postwar Austria had near universal healthcare and robust social insurance plans that Hayek would have been eligible for.)

IHS vice president George Pearson (who later became a top Koch Industries executive) responded three weeks later, conceding that it was all but impossible to arrange affordable private medical insurance for Hayek in the United States. However, thanks to research by Yale Brozen, a libertarian economist at the University of Chicago, Pearson happily reported that “social security was passed at the University of Chicago while you [Hayek] were there in 1951. You had an option of being in the program. If you so elected at that time, you may be entitled to coverage now.

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Charles Koch to Friedrich Hayek: Use Social Security!

Hayek's comparatively liberal attitude toward social insurance hardened considerably by the time he published his 1960 opus, The Constitution of Liberty. Despite privately spending the intervening years paying into Social Security, Hayek devoted an



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The Progressive Mind » Law Notes — Home Page

"Neither is it that US foreign policy is cruel because American leaders are cruel. It's that our leaders are cruel because only those willing to be inordinately cruel and remorseless can hold positions of leadership in the foreign policy establishment; it might as well be written into the job description. People capable of expressing a full human measure of compassion and empathy toward faraway powerless strangers - (let alone American soldiers - do not become president of the United States, or vice president, or secretary of state, or national security adviser or secretary of the treasury. Nor do they want to." From 'Rogue State: A Guide to the World's Only Superpower' by William Blum

From "9-11, Six Years Later": "If one looks at the credentials of skeptics compared to the credentials of defenders of the official line, it is impossible to dismiss skeptics as kooks. There are many people with strong imaginations on the Internet, but serious skeptics stick to known facts, known violations of standard procedures and the laws of physics. The vast majority of the people who call skeptics "kooks" are themselves ignorant of physics and have little comprehension of the improbability that such an attack could succeed without either the complicity or complete failure of government agencies. " Paul Craig Roberts

"Cowardice asks the question, 'Is it safe?' Expediency asks the question, 'Is it politic?' Vanity asks the question, 'Is it popular? But, conscience asks the question, 'Is it right?' And there comes a time when one must take a position that is neither safe, nor politic, nor popular but one must take it because one's conscience tells one that it is right." Martin Luther King, Jr.

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